Published On Feb 03, 2023
in Retail Real Estate Industry
4 Tips to Determine the Best Location for your Restaurant
So, you have decided to open a restaurant! You have the business plan finalized, the concept and décor selected, but there is still one particularly important item left to cross off your to-do list- you need to select a space. But how do you even begin? Here are four basic tips to get you started:
- Consider Your Target Audience
Identifying your target audience is a crucial step in developing any business model. To best connect with potential customers and build a strong customer base, it is crucial to know who you are targeting and what they want. Are you located in a specific neighborhood or area of the city? Is there a nearby college campus, tourist attraction, or other popular spot that draws visitors to your restaurant? If so, this can provide valuable insight into who might be interested in visiting your business. This will help guide every decision you make about your business moving forward and will help you determine the amenities you require of a restaurant space and thus, the most appropriate location as well.
- Know Your Assets
Once you have identified your target audience, research how much it costs to rent restaurant space in that area. Depending on whether you are in a busy downtown city or tucked away in a more residential neighborhood, this information will help ensure you understand how much you will soon be spending on rent, utilities, and any other expenses your ideal space may not already include in its existing infrastructure. Be sure to account for other amenities such as signage opportunities, parking, lighting, and general convenience, as these will all be factors that help to set you apart from your competition & encourage returning customers as well.
- Research Your Competition
To set yourself up for success, you will want to find ways to set yourself apart from similar neighboring restaurants before you open. Asking for honest, constructive feedback can be extremely valuable as you work toward opening your restaurant to ensure your customers and their preferences are catered to- as well as understanding which types of restaurants have been successful (and not) at that location in the past. By engaging with the community via local focus groups and social media platforms and online communication forums, you will be able to better understand how to target your desired audience and will consequently help you understand where your competitors lie.
- Focus on the Value of Exposure
Visibility and foot traffic are crucial factors in the success & advertising of a business. For restaurants specifically, positioning your business in a shopping center that encourages organic dwell time in a variety of uses such as a grocery or service-minded retailer, will ensure exposure not only to the existing demographic, but your target audience as well- resulting in customers and profitability for your new business. If you have an online presence and your target audience aligns, encourage your customers to engage digitally via that platform for special incentives, promotions, rewards, etc. Positioning your new restaurant in a grocery-anchored center will ensure exposure to the existing demographics of the area, resulting in customers and profitability.
Embarking on a new business adventure can be a daunting project – but with a bit of research and planning and putting your customers at the center of everything you do, you will be sure to set your restaurant apart from competing restaurants and build a strong customer base for years to come.